Correlation Between Bumrungrad Hospital and Commercial Vehicle
Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and Commercial Vehicle at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Bumrungrad Hospital and Commercial Vehicle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bumrungrad Hospital Public and Commercial Vehicle Group, you can compare the effects of market volatilities on Bumrungrad Hospital and Commercial Vehicle and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Bumrungrad Hospital with a short position of Commercial Vehicle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and Commercial Vehicle.
Diversification Opportunities for Bumrungrad Hospital and Commercial Vehicle
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bumrungrad and Commercial is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and Commercial Vehicle Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commercial Vehicle and Bumrungrad Hospital is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Bumrungrad Hospital Public are associated (or correlated) with Commercial Vehicle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commercial Vehicle has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and Commercial Vehicle go up and down completely randomly.
Pair Corralation between Bumrungrad Hospital and Commercial Vehicle
Assuming the 90 days trading horizon Bumrungrad Hospital Public is expected to generate 0.9 times more return on investment than Commercial Vehicle. However, Bumrungrad Hospital Public is 1.11 times less risky than Commercial Vehicle. It trades about -0.16 of its potential returns per unit of risk. Commercial Vehicle Group is currently generating about -0.21 per unit of risk. If you would invest 600.00 in Bumrungrad Hospital Public on September 12, 2024 and sell it today you would lose (50.00) from holding Bumrungrad Hospital Public or give up 8.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bumrungrad Hospital Public vs. Commercial Vehicle Group
Performance |
| Timeline |
| Bumrungrad Hospital |
| Commercial Vehicle |
Bumrungrad Hospital and Commercial Vehicle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumrungrad Hospital and Commercial Vehicle
The main advantage of trading using opposite Bumrungrad Hospital and Commercial Vehicle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital position performs unexpectedly, Commercial Vehicle can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Commercial Vehicle will offset losses from the drop in Commercial Vehicle's long position.| Bumrungrad Hospital vs. Ramsay Health Care | Bumrungrad Hospital vs. Universal Health Services | Bumrungrad Hospital vs. Superior Plus Corp | Bumrungrad Hospital vs. SIVERS SEMICONDUCTORS AB |
| Commercial Vehicle vs. Reinsurance Group of | Commercial Vehicle vs. SOLSTAD OFFSHORE NK | Commercial Vehicle vs. SBI Insurance Group | Commercial Vehicle vs. SBM OFFSHORE |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |